By Greg Hunter’s USAWatchdog.com
Some people see the Internet as an electronic world of wires and computers run at speeds measured in nanoseconds. I tend to see the Internet as an electronic extension of human biology. Sample enough of the Internet in the right places and you can get a snapshot of what people are generally feeling. One of my own readers, Alyce, commented recently, “It’s easy for people to become lulled into a false sense of security. The term normalcy bias keeps popping up in articles I read lately. It is when people interpret warnings in the most optimistic way possible. Happens all the time…human nature to believe that since a disaster has never occurred in one’s lifetime, that it just never will. Trust your instincts.” Bravo Alyce! What are some of the headlines flashing warning signs? Let’s start with one concerning the ongoing enormous problems with the banks. The Phoenix Business Journal reports “Arizona, Nevada Sue Bank of America over home loans, modifications.” The story goes on to say, “Attorney General Catherine Cortez Masto filed in the Eighth Judicial District of Nevada . . . The Nevada complaint alleges the bank told consumers they would not be foreclosed on while requests for loan modifications were under way, not acting on the modifications within a specific time, making false promises to consumers and potentially selling their homes while they were waiting for decisions. “We are holding Bank of America accountable for misleading and deceiving consumers,” said Masto. “Nevadans who were trying desperately to save their homes were unable to get truthful information in order to make critical life decisions.” (Click here to read the complete story.) There have been dozens of lawsuits against banks alleging fraud and wrongdoing. This marks a new twist in that, now, lawsuits are coming from state AG’s.
The FDIC shut down another 6 banks last week. 157 small banks have gone under this year alone. Instead of sounding the alarm, this news is met with a yawn by the mainstream media. This is a record for the new millennium and proof positive things are NOT getting better. On the big bank front, many say they are hiding the fact they are insolvent! The Market-ticker.org headline says it all “System Was Insolvent In 2008 (And Still Is)”. (Click here to read the complete story.) We are clearly facing a systemic solvency problem, but few people realize just how bad the economy really is.
Economist John Williams has been warning of an economic collapse for a few years. In his latest Shadowstats.com report, he says, “. . . the U.S. remains the proverbial elephant in the bathtub in terms of pending effective sovereign bankruptcies.” Williams thinks it will all hit the fan within 6 months and is predicting a dollar catastrophe. Europe is a sideshow to the coming main event. Williams says, “The various European crises remain an intermittent foil for the U.S. dollar, pulling market attention away from the unfolding solvency crisis in the United States and a likely move to massive selling against the U.S. currency. Accordingly, high risk of the early stages of a hyperinflation (see Hyperinflation Special Report) beginning to unfold by mid-2011 continues.”
Williams’ views fall right in line with this recent headline from Theeconomiccollapseblog.com—“Tipping Point: 25 Signs That The Coming Financial Collapse Is Now Closer Than Ever.” The story goes on to say, “Is the world on the verge of a major financial collapse? Let’s hope not, but with each passing week the financial news just seems to get even worse. Not only is U.S. government debt spinning wildly toward a breaking point, but many U.S. states (such as California) are in such horrific financial condition that they are beginning to resemble banana republics. But it is not just the United States that is in trouble. Nightmarish debt problems in Greece, Spain, Portugal, Ireland, Italy, Belgium and several other European nations threaten to crash the euro at any time. In fact, many economists are now openly debating which will collapse first – the euro or the U.S. dollar.” The story goes on to provide 25 real reasons (with sourcing links) why we could be on the brink of a financial collapse. (Click here to read the complete story.)
How bad do you think all this could get if we got involved in yet another war? Check out this disturbing headline from Fox News, “Mullen: US ‘very ready’ to counter Iran on nukes.” This was said this past Saturday and is a not so subtle threat of war. (Click here to read the complete Fox News story.) Iran is not a rag-tag country that we will defeat easily or cleanly. If there is war in this part of the world, sky high fuel prices and economic collapse will be the least of your worries.
A reader named Jimmy asked me yesterday, “Do you personally think 2011 will be the year that the economy ‘really’ starts to fall apart? And by really, I mean to the point that the government can’t stop it or do you think it can be stretched out for years to come? I ask because I got into buying gold and silver coins quite late and don’t yet have enough and fear the prices will start getting so out of hand that I won’t be able to catch up.” I replied to Jimmy, “I really do not know when it all falls out of bed, but I do know it will happen fast. Do what you think you should do now, and do not wait.” Given the headlines out there now, that is probably good advice for just about everybody.